Last minute number crunching brought Tauranga City Council's annual plan deliberations to an early close on budget and remaining with a total 6.7 per cent rates rise.
After three days of discussion the council was nearly $1 million over budget and looking at a total rate of 7.6 per cent and $399 million debt.
Last year's new look council has completed its first annual plan deliberations.
But final numbers putting a rates rise of 2 per cent, plus a 4.7 per cent stormwater levy, and debt at $397m were achieved with a last minute resolution from financial controller Paul Davidson.
Paul suggested to council that $1.07m savings in the transportation capital expenditure budget is included with earlier agreed savings in the open space operational budget of $325,000, and $110,000 in the transportation operational budget.
Debt is handled by removing the $758,000 balance of the debt retirement levy and moving it to a debt reduction reserve.
Councillor John Robson says it puts the money where people can see and it has no effect on the numbers, other than to keep council debt down.
Any surplus from the current financial year is also to be allocated to debt.
The council will not apply the expected $2 million rates surplus from the current year to future rates. By applying the monies to debt reduction, brings the total down to $397m - in line with the draft annual plan, says Paul.
The amount allocated to the risk management reserve will be increased to about $446,000 to maintain the two per cent rates increase.
Mayor Stuart Crosby says the outcome is due to after-hours work on Wednesday night by councillors John Robson and Gail McIntosh and staff.
The council has kept the rate increase to two per cent, added the stormwater levy, while producing a budget that has pushed the Greerton Library project across the line, kept the mobile library and managed to return some lawn-mowing and street sweeping back into the various department budgets, says John.
Councillors spoke in support and appreciation of the goals being achieved.
5 comments
Overit
Posted on 06-06-2014 12:04 | By overit
Amazing how previous Councils have not managed to do the same. They are starting to learn now as their jobs depend on performance more.
But didn't they promise about 2% rates increase?
Posted on 06-06-2014 12:35 | By Annalist
Because make no mistake, the 5% stormwater levy is a rates increase. Councillors seem to have baulked at the hard decisions to cut costs across the board. More of the same perhaps?
Big deal
Posted on 06-06-2014 13:04 | By Sambo Returns
big deal Stuart, you and your team, where elected to do a job, and get paid accordingly, so what do they want..... congratulations and another photo opportunity!!!!, and most can sort figures out to look good, but reality still means we have no decent storm water system and debt is still close to 400k, sorry you will not be getting any thanks from this cowboy, and Matt a 10year plan is exactly that, in 2 x years it will not have any meaning, we want a decent infrastructure now, not a library to pander to a few.
To clarify....
Posted on 06-06-2014 16:20 | By Matt.Cowley
I never referred to the stormwater levy as my reason for failing to deliver on some projects that I campaigned on. I said it was due to this budget focusing on delivering projects that previous councils couldn't. I'm working well with the elected members to make sure any forward looking projects are appropriate and they can be achieved within our financial means.
4.5mil
Posted on 06-06-2014 21:00 | By Capt_Kaveman
extra thats some 88mil+ to run the city for a year, sorry they have not done enough as its still a 6.7% increase, just to add there is no after hours as a councilor its part of the job, roll on next election
Leave a Comment
You must be logged in to make a comment.